The department of pharmaceuticals (DoP) has been holding meetings with the industry executives to take stock of the situation, people in the know said.
“The government is planning to trigger the Essential Commodity Act for our industry so that black marketing and hoarding can be avoided. We await the final decision. Hopefully the supply chain would be reinstated soon,” confirmed Namit Joshi, chairman, Pharmexcil (Pharmaceticals Export Promotion Council of India).
Industry experts said the ongoing global conflicts have severely disrupted the supply of critical pharmaceutical raw materials, triggering unprecedented price increases of 200-300% across. “The PNG shortage, container shortages are adding pressure on distribution,” an executive said.
The government has been holding elaborate discussions with the industry and is set to announce key decisions for the pharma industry.
“We have been having meetings with the industry and ministry of petroleum and natural gas (MoPNG). The meeting was organised under the umbrella of department of pharmaceuticals of the ministry of chemical and fertilizers. Inter-ministerial discussions were held where relevant stakeholders presented their requirements to MoPNG. We have collated the requirements and shared it with MoPNG,” added Joshi.
Industry executives say over the past few days prices of key active pharmaceutical ingredients (APIs) and solvents have surged sharply amid the ongoing war, dealing a fresh blow to them.APIs have risen by 30-35% on average over the past several weeks alone. Glycerine has seen the steepest climb of 64%, while paracetamol is up 25% and ciprofloxacin has become 30% more expensive.
Packaging materials have not been spared either; for instance polyvinyl chloride and aluminium foil prices have jumped 40%, industry executives said.
The ripple effects extend well beyond finished drugs. Glycerine, propylene glycol, and solvents essential to virtually every liquid formulation, from syrups and oral drops to sterile preparations have all become significantly costlier, as have key intermediates used in the manufacturing chain.
“With supply cuts and sharp price escalation, both pharma manufacturers and packaging suppliers are under increasing stress,” said Abhay Srivastava, senior president of operations at Mankind Pharma.
The industry is pushing for exemptions like those extended during the Covid-19 pandemic, which allowed manufacturers to operate under the essential commodities list a provision that helped shield production from broader supply chain disruptions.
Pharmexcil had earlier also sought freight subsidies and logistical support to manage the increased costs.
“Any interruption to manufacturing carries far-reaching consequences not just for patients at home, but for international pharmaceutical supply chains that depend heavily on Indian production,” one of the experts said.
